Dish Network on Thursday reported quarterly results that missed analysts’ estimates, but the satellite television provider lost fewer subscribers than expected.
Shares fell 1 percent to $62.97 in early Thursday trading.
The company has been buying up wireless airwaves, or spectrum, in recent years as its satellite business has come under pressure from cable as well as cheaper streaming options. In April, the company was the second-largest winner in a U.S. government auction of spectrum. The end of a ban on merger talks associated with the auction means that Dish can hold discussions on possible combinations with other companies in the industry.
“We believe that the majority of Dish value lies in spectrum, and that the company will continue looking at M&A opportunities among traditional carriers and outside participants,” JPMorgan analysts said in a note.
Dish said it lost about 196,000 net pay-TV subscribers in the second quarter. The number includes subscribers to both its satellite TV and Sling TV services. Dish launched the streaming service in 2015 to attract younger viewers who are shifting away from bigger television bundles.
The loss came in below analysts’ average expectation of 256,000 subscribers, according to financial data and analytics firm FactSet.
JPMorgan analysts called the results mixed, noting that including Dish, the pay-TV industry lost 892,000 subscribers in the quarter, 17 percent worse than the year-ago period.
Net income attributable to Dish plunged 90 percent to $40 million or 9 cents per share in the quarter, hurt by litigation expenses, net of taxes, of $280 million.
Excluding one-time items, Dish earned 69 cents per share, missing analysts’ average estimate of 75 cents, according to Thomson Reuters I/B/E/S.
Dish said second-quarter revenue dipped nearly 6 percent to $3.64 billion as average revenue per user declined in its pay-TV business. Analysts on an average had expected $3.72 billion.